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7/29/2019 Thesis-Adapting Corporate Culture to Accommodate Knowledge
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ADAPTING CORPORATE CULTURE TO ACCOMMODATE KNOWLEDGEMANAGEMENT
byJennifer A. Kellerman
A Master's paper submitted to the facultyof the School of Information and Library Science
of the University of North Carolina at Chapel Hillin partial fulfillment of the requirements
for the degree of Master of Sciencein Library Science.
Chapel Hill, North Carolina
April, 1999
Approved by:
___________________________Advisor
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INTRODUCTION
The world of business has changed dramatically in the past decade. Advances in
technology have made it easier for companies to generate and disseminate information
and to communicate all over the world. Internationally, companies are merging with or
acquiring other corporations world-wide, creating a global business arena. Employees
are increasingly mobile, as is their experience and knowledge. These factors combined
have created a new business world, one in which information and knowledge play a
major role.
Companies are now viewing knowledge as a crucial factor to their success. They are
implementing intellectual assets into their business plans and figuring out ways in which
to capitalize upon those assets. How is this different from the way business is
traditionally done?
The economy has changed from an industrial-based to a service-based economy in which
knowledge and information are the product and the power needed to succeed. "The
economic world we are leaving was one whose main sources of wealth were physical"
(Stewart xx). The old adage that "knowledge is power" is being taken seriously today and
companies are acting upon it. Today's source of wealth is intellectual capital.
"Intellectual capital is intellectual material -- knowledge, information, intellectual
property, experience -- that can be put to use to create wealth" (Stewart xx). Knowledge
and information, according to Thomas Stewart, author of Intellectual Capital: The New
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Wealth of Organizations, have become the new raw materials of the Information Age
(Stewart xx). This change in focus from the industrial economy to the information
economy has necessitated a change in the basic rules of business.
"In industrial times the basics of economics were driven by scarcity -- scarcity of
resources, scarcity of products, or scarcity of demand. Today, in the knowledge
economy, we have a new set of rules based on abundance, not scarcity. There is an
abundance of knowledge, and it grows exponentially. The challenge, therefore, is to
capture and utilize the knowledge." (Kirby and Hughes 122)
Companies are devising ways to capitalize on their knowledge assets. These strategies
are often referred to as "knowledge management." The concept of knowledge
management can be as varied as the kinds of businesses which employee it. There are a
number of definitions, ranging from the purely technological aspect to the purely
theoretical. Emphasizing a particular aspect of knowledge management, such as the
technological, is a disservice to a complex and potentially empowering tool for success in
today's economy. Knowledge management is much more than a database of information
or an intranet site.
Simply put, knowledge management is the "processes by which a firm creates and
leverages intellectual capital" (Bassi 25). To be successful, knowledge management
practices must not only utilize the intellectual capital already existing in the company but
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it must also foster new ideas. A more descriptive definition of knowledge management is
put forth by Lucy Marshall in an article in Online Magazine:
"Knowledge management theory discusses accessing and using all information
within an institution, enabling individuals to apply pertinent information to whatthey already know, in order to create knowledge" (Marshall 92).
This definition highlights some of the complexities of knowledge management: it is not
merely gathering the information within an organization but it is also using knowledge to
generate new ideas, knowledge and information that will advance the company. Another
definition of knowledge management comes from Hubert St. Onge who instituted
knowledge management practices at the Canadian Imperial Bank of Commerce. Mr. St.
Onge sees knowledge management as the challenge of "making an organization's
unarticulated or tacit knowledge explicit so that it can be shared and renewed constantly"
(Allee Training & Development 71).
For the purposes of this paper, knowledge management is defined as:
The gathering, organizing, evaluating, synthesizing and disseminating of a
company's intellectual assets.
Defining the concept is only the beginning. Companies must learn how to incorporate
knowledge management into the business in such a way that it is lucrative for the
company. Companies already possess knowledge and intellectual assets. The challenge
is not in infusing knowledge but in harnessing the knowledge already present in the
company and utilizing it to foster better decision-making.
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The transfer or dissemination of knowledge is "a basic requirement for any learning to
take place in cooperative strategies" (Aadne, von Krogh and Roos 14). Frequently,
employees are resistant to the idea of sharing what they know or the work they have
done. "[E]ven if a firm has a clearly defined and communicated learning motive, the
potential for learning is highly determined by the openness of the partner (Hamel, 1991)
or an appropriate atmosphere (Haspeslagh and Jemison, 1991)" (Aadne, von Krogh and
Roos 14). In other words, a corporate culture must be created that allows employees to
feel comfortable in revealing their knowledge and recognizes their contributions.
Thus, a major part of the process of creating successful knowledge management practices
is in developing an organization that supports knowledge and information sharing.
Changing the traditional corporate culture that companies have fostered means a change
in the beliefs and values that constitute that culture. "A culture of learning and
knowledge sharing does not happen by accident" (Allee 212). Companies must work not
to contain or restrain knowledge, but to create a corporate culture that allows knowledge
to flow. Allee suggests that highly regimented structure will not foster information flow.
Instead, a knowledge management environment is one in which knowledge is self-
organizing (Allee Training & Development 72). Allee writes in The Knowledge
Evolution that "the key elements of a knowledge culture are a climate of trust and
openness in an environment where constant learning and experimentation are highly
valued, appreciated, and supported" (Allee 212).
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How do companies create the culture and environment that is conducive to knowledge
sharing? This paper will examine the following two questions:
1. What changes or adaptations must be made to the company structure and/ormanagement in order for knowledge management to be successfully incorporated into
the workplace?
2. What strategies do managers employ to create a corporate culture that is conducive tothe successful implementation of knowledge management practices?
Change can be unsettling, even frightening, when what is familiar and seemingly
successful is replaced by a less rigid structure in which employees at all levels are
encouraged to share their knowledge and to use other employees' knowledge to create
ideas and information for the company. Those companies who have had notable success
in knowledge management have addressed these fears and overcome them to build vast
knowledge networks. How have the traditional, hierarchical corporate structures
adapted? How are employees involved? This research explores the challenges which
must be met in order for companies to move into the Information Age and truly use their
intellectual assets.
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LITERATURE REVIEW
The literature available on knowledge management is as extensive as is the concept.
There is information available from academics and business professionals who are using
knowledge management in the workplace, and consultants, to name only a few. There is
a great deal written about the corporate culture and the behavioral issues that must be
addressed in order for knowledge management practices to be successful in the
workplace. Many of the issues require changes to the traditional way of doing business.
This research focuses on a selection of the literature that explores how a company must
change its management structure and corporate culture in order to facilitate the flow of
information, as well as the changes in the economy and new approaches to business
management.
Changes in the economy and in the business world have brought about an increased
interest in knowledge management. There has been a shift from an industrial-based
economy to one that revolves around technology and information. Businesses must
change their focus from manufacturing and industrial assets to knowledge and
information assets and the technology that supports both. In addition, businesses are
forming alliances, through mergers and acquisitions, with companies all over the world.
In this "globalization" of the economy, companies rely heavily on technology for all
aspects of their business, particularly communication. Advances in technology have
made vast amounts of information available at ever-increasing speeds, making it even
more challenging for companies to get and/or stay ahead.
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It is in this fast-paced, information-intensive environment that companies must learn how
to remain competitive. The traditional techniques will not necessarily be successful
today. "To get new and better, you have to throw out the old, outworn, obsolete, no
longer productive, as well as the mistakes, failure, and misdirections of effort of the past"
(Drucker 340). New tools and approaches must be employed by companies. "[T]he
management community has come to realize that what an organization and its employees
know is at the heart of how the organization functions" (Davenport and Prusakx). The
challenge for companies is in harnessing the knowledge inside and utilizing it to
strengthen the companies position in the market.
Changes in the business world have necessitated changes in managing and operating
profitable companies. Goals and strategies must be re-evaluated in the context of the new
global, information-based economy. Often, this evaluation results in changes in the
company, changes that are necessary because the elements that the old (industrial)
economy relied on, such as stability, control and predictability (Kirby and Hughes 27),
are less present today than ever before. The traditional business paradigm, that of
"business is war" has given way to a more cooperative model in which companies seek
out input from customers, create teams and form strategic alliances within and outside the
company (Brandenburger and Nalebuff 1). In the information-based, high-technology
economy, companies must be able to use every available resource to keep them ahead of
competitors. In order to do this, the American Productivity and Quality Center says that
companies must "know what they know" (Knowledge Management Consortium 6).
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Businesses must recognize knowledge as a product, "perhaps our most important
productWe must focus on building knowledge -- the most critical ingredient in creating
all the others" (Kirby and Hughes 121).
That companies should utilize their intellectual assets is not a new concept. "A firm's
intellectual capital -- employees' brainpower, know-how, knowledge, and processes -- has
always been a source of competitive advantages. So has knowledge management -- the
processes by which a firm creates and leverages intellectual capital" writes Laurie Bassi.
"What is new is that knowledge management and the intellectual capital it creates are the
primary sources of competitive advantage in a growing number of industries" (Bassi 25).
In adapting to the changes in an economy which emphasizes knowledge building and
utilizing intellectual capital, companies are faced with adapting themselves to an
information-intensive environment. This is an environment in which, in order to work
well, information and knowledge must be shared. "Because information represents
potential power, one of the most highly developed skills -- and consequently one of the
most constraining habits within an organization -- is that tendency to harbor and limit
access to information" (Kirby and Hughes 76). Companies are faced with the challenge
of not only gathering and organizing their intellectual assets, but they must also convince
employees to participate in the knowledge management process by sharing their own
knowledge and utilizing the knowledge of others. Technology makes the sharing
possible but "it is nave to assume that new technologies will automatically change
behaviors. The presence of technologies that allow information sharing cannot in and of
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itself change a company culture" (Allee, Knowledge Evolution 214). The mistake many
companies make is in believing that once the computer networks are set up and the
software installed, knowledge sharing and information flow will miraculously begin.
"Knowledge wants to happen and it happens in community" (Allee, Knowledge
Evolution 218). "Knowledge is transferred in organizations whether or not we manage
the process" (Davenport and Prusak 88). The organized and managed flow of knowledge
and information, however, does not happen by itself. Several factors work in conjunction
with each other to create successful knowledge management projects. According to the
American Productivity and Quality Center (APQC), these factors are leadership,
technology, measurement and culture. Culture is defined by Verna Allee as "the
knowledge people hold collectively, enabling them to interpret their experience in similar
ways and behave according to agreed upon norms" (211). Management must work to
create and foster an environment in the company that allows information to flow freely.
Human networks must supplement the technological ones to enable the company to
capture and disseminate knowledge.
What makes a culture conducive to knowledge sharing and information flow? "The key
elements of a knowledge culture are a climate of trust and openness in an environment
where constant learning and experimentation are highly valued, appreciated, and
supported" (Allee, Knowledge Evolution 212). In March 1999, the APQC concluded a
benchmarking study called "Creating a Knowledge Sharing Culture: Institutionalize the
disciplines of reflections, learning and thinking" from which they conclude that the
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culture of an organization is an integral part of knowledge management. Employees must
be convinced that sharing one's knowledge and utilizing information from a company
network is good, not only for the company but also for the employees. The APQC study
found that "leveraging knowledge is only possible when people value building on each
other's ideas and sharing their own insightsShared history, expectations, unwritten
rules and social mores all combine into the culture which will affect behavior, decision
making and the organizations' approach to markets, customers, and suppliers"
(Knowledge Sharing Culture 1).
Samuel Greengard, a contributing editor at Workforce magazine and frequent writer on
knowledge management, offers another list of factors necessary to the successful
implementation of knowledge management (Greengard, "Reality" 90). Like the APQC,
Mr. Greengard believes that leadership is key. "It's essential to ensure that senior
management understands the value of knowledge management and supports the
development of programs and policies to make it a reality" ("Reality" 90). It is important
for managers not just to pay lip service to knowledge management projects but to actively
support it in their actions and decision-making.
Next, Greengard believes that cross-functional teams must be used in the knowledge
management implementation process. Teams consisting of employees from various
departments with a wide range of skills will help ensure that the knowledge management
project will encompass the entire company and that the information will be organized in
such a way that employees can find it easily. A risk, says Mark T. Stone, director of
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internal knowledge management at Arthur Andersen's business consulting division, is of
"developing a system that isn't relevant to the end user because it has been designed by a
few people who are focused solely on their needs" (Greengard, "Reality" 90).
Culture is a very important part of the success of knowledge management in a company.
Thomas Koulopoulos, president of the Delphi Group, a consulting firm that specializes in
knowledge management, says, "No knowledge management system can work without an
organization undergoing a significant cultural change" (Greengard, "Reality" 90).
Changes to the culture include incentives, recognition and promotions but, most
importantly, there must be a climate of trust in which sharing knowledge is encouraged.
Employees must "buy in" to the concept of knowledge sharing. This requires employee
education and training but, ultimately, employees want to know how knowledge sharing
will benefit them.
Greengard also suggests that having a knowledge management process in place is key to
the successful implementation. There must be a system for gathering, organizing and
disseminating the information. It must be well-structured and made clear to all
employees.
Finally, Greengard writes that companies should get used to viewing knowledge
management as a work in progress (Greengard, "Reality" 91). The process should be
constantly monitored and evaluated and adapted when better ways of managing the firm's
intellectual assets arise.
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It is generally agreed upon that having a culture that supports and nurtures knowledge
sharing is a vital component of successful knowledge management. Most companies do
not currently have a culture that is conducive to knowledge sharing. "Sharing is not a
strong part of the culture, despite the wide use of communication technologies," writes
Thomas Stewart in Intellectual Capital. Employees are rarely recognized or rewarded for
sharing what they know and often feel that they will lose out by doing so. Greengard
finds that there are three cultural issues in the reluctance of employees to share their
knowledge. The first is that "people do not like to share their best ideas" ("Culture" 93).
It is believed that sharing one's best ideas reduces one's chances of getting ahead as others
usurp ideas. The second issue is that "people do not like to use other people's ideas for
fear it makes them look less knowledgeable, and that they're suddenly dependent on
others to do their jobs." Finally, "people like to consider themselves experts, and prefer
not to collaborate with others" ("Culture" 93).
Changing this culture that supports the hoarding of knowledge is not an easy task. The
APQC purports that certain things are necessary in order to transform a culture. They are
similar to the factors necessary to institute knowledge management. Strong leadership is
needed to guide the employees and "show by example." Management must actively
promote the successes to encourage the employees to take part and contribute. There
must be a clearly defined process or plan in place that is communicated to the employees.
And, the necessary tools must be present; for example, computer networks. (APQC
Brittany Manasco)
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Arthur Andersen made strides in creating its knowledge-centered culture by creating
programs that included seminars and workshops (Greengard, "Culture" 93). Through
this method, the company communicates its vision to employees while providing them
with an understanding of the knowledge management process and benefits. At Buckman
Laboratories, developing a culture that is supportive of knowledge management is a
process of education and incentives. Mark Koskiniemi, vice president of human
resources at Buckman Laboratories, says "We had to assist them [employees] in
understanding what the system is, what it does and how it can benefit them personally.
Managers had to learn they no longer can oversee the flow of information within the
company; they have to help employees get the information they need" (Greengard,
"Culture" 94). Buckman conducts workshops to demonstrate the benefits of knowledge
management and creating forums for employees to discuss knowledge management. The
discussion groups showed "management's unwavering commitment" (Greengard,
"Culture" 94) to the knowledge process. Buckman does not offer financial incentives to
convince employees to participate. Instead, it devises ways to recognize those employees
who do contribute and entice them to continue. For instance, there was an event at a
resort for those employees who had contributed useful information. At the meeting, the
employees worked on new knowledge management strategies, listened to a presentation
and received gifts of computer accessories. Following the meeting, participation in
discussion forums at Buckman increased and has not dropped off (Greengard, "Culture"
94).
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Before embarking on a mission to change a company's culture, management must
examine the culture that already exists within the organization. The core beliefs and
assumptions of an organization are "particularly influential because they are often
invisible to people in the organization" (APQC, Knowledge Sharing Culture 4). Instead
of working to change these core beliefs, which can be very difficult, companies should
construct their knowledge management projects so that they incorporate and work with
the core beliefs of the organization.
Management must also construct a clear plan, complete with desired results or goals, for
its knowledge management project. The APQC found that "sharing knowledge is more
likely to become embedded in people's behavior when it is tied to strategic business
goals" (APQC, Knowledge Sharing Culture 2).
The traditional structure of an organization, the hierarchy, is not always conducive to
successful knowledge management. The lines between job functions and status become
blurred as information flow and knowledge sharing become part of daily work. Stewart
writes of the change in management structure: "Where once there were pyramids, bosses,
departments, troops, now there are webs, nodes, clusters, flocks. In companies whose
wealth is intellectual capital, networks, rather than hierarchies, are the right
organizational design" (Stewart 182). He likens the new structure to the flight patterns of
geese. "Geese on the wing form a V, but their leader has no special authority, and cedes
his place if he tires or the flight changes direction" (Stewart 181). While perhaps it is not
advisable for companies to relieve its managers of their leadership responsibilities, it is
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beneficial to consider the possibility that not only senior management has ideas and
innovations that can steer the company towards greater success and profits.
Davenport and Prusak note that for the "free flow of information to prevail, the
organization culture must be extraordinary" (109). Chaparral Steel, for example,
considers every employee a knowledge worker. "Ideas come from everybody in the
organization. A visitor to Chaparral once noticed that the security guard was reading a
textbook about steel-making. There is no division of knowledge labor designating some
people as thinkers and relegating others to doers" (Davenport and Prusak 109). At
Chaparral, the authors note,
"the organizational structure is remarkably flat, both officially and
symbolically. The company has a unique apprenticeship program for allproduction workers that includes both classroom and on-the-job training.
Risk taking is encouraged. Employees are selected for their ability andtheir attitudes about learning. There are no time-clocks, and there is a
generous profit-sharing system. These cultural and organizationalapproaches clearly encourage Chaparral's workers to gain and share
knowledge" (109).
Commitment and leadership of management is crucial. The APQC discovered in their
study, "Creating a Knowledge Sharing Culture", that "the behavior of leaders, particularly
senior leaders, often has a strong impact on others in the organization" (APQC,
Knowledge Sharing Culture 2). Managers must teach by showing and doing themselves.
Stewart writes that "the greatest challenge for the Information Age manager is to create
an organization that can share knowledge" (Stewart 184). The roles of managers change
as knowledge sharing becomes a reality. It is difficult for managers to control the flow of
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information because it is traveling through computer network and informal human
networks, from the top of the organizational structure to the bottom and from the bottom
to the top.
"Surely, knowledge management can toss the entire hierarchical structure
into disarray. That's because KM isn't only a top-down system designed tofuel decisions by senior executives. It's also a bottom-up and peer-to-peer
tool that seeds an organization with intellectual capital, and this is foreignground for most organizations" (Greengard, "Storing, Shaping" 84).
Stewart believes that basic management jobs must be done differently (Stewart 184).
Managers must learn how to help employees find the information they need. There is
"less supervision of the content of the work, more supervision of an employee's overall
performance and career," says Susan Falzon from CSC Research & Advisory Services
(Stewart 184).
Managing in a knowledge-focused organization calls upon an "unusual mix of
technological, psychological and business skills" (Davenport and Prusak 112). Managers
must be able to communicate not only with employees from their own departments but
with employees from other departments who will likely be working on cross-functional
teams led by managers. Other ways to involve senior management in the knowledge
management process and get their buy in is the technique used by Sequent Computers, a
systems-integration company. The electronic library team at Sequent Computers
requested senior executives to " 'map the revenue value chain' (the key processes that
made Sequent money) and then identify where there were gaps that better knowledge
could fill" (Grayson and O'Dell 24).
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For some companies, their new organizational structure calls for a knowledge leader.
"Companies that are serious about knowledge often create formal knowledge-
management functions. A knowledge leader sets the course and attends to the knowledge
creation process" (Allee, "Twelve Principles" 72). Monsanto has a "director of
knowledge management" and Philip Morris has a "knowledge champion" (Allee,
"Twelve Principles" 72). These leaders help guide the knowledge management process
and keep the company's goals in sight as they continue to elicit new ideas and knowledge
from employees. Davenport and Prusak outline the role of the knowledge leader (or
"chief knowledge officer"). Among the responsibilities of the chief knowledge
officer/leader are three of particular importance, according to the authors. They are
"building a knowledge culture, creating a knowledge management infrastructure and
making it all pay off economically" (115). The chief knowledge officer/leader is
responsible for overseeing the management of the firm's knowledge so that it is utilized
to the utmost advantage. For some companies, chief knowledge officers "act as
intermediaries between employees and incoming information" (Hibbard and Carrillo 49).
Ogden Forbes, the chief knowledge officer of Shopping.com, an online consumer goods
store, says his role is to "monitor high-quality data flowing in, identify the data, and
know who in the company might need and be able to use the data" (Hibbard and Carrillo
50).
When working to create a culture of knowledge sharing, one of the most volatile and vital
factors is the human element. The employees must be involved in the process. They
must buy in to the concept of knowledge sharing. "A firm can begin to foster a
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knowledge culture in part through such means as education, incentive programs, and
management example" (Davenport and Prusak 115).
In order to create the open environment in which employees feel comfortable sharing
their knowledge and using others' knowledge, an atmosphere of trust must be developed.
"If I don't trust my co-workers, I can have all the collaborative technology in the world,
but collaboration is not going to happen," says Scott Smith, managing principle of Global
Knowledge Management Consulting Services at IBM. "Knowledge management
strategies require the right technology and a corporate culture that encourages employees
to share information with one another" (Information Week 113). Lack of trust within an
organization can cause a knowledge management project to fail. Building trusting
relationships between employees and managers and employees and other employees will
be instrumental to the success of the knowledge management process. Davenport and
Prusak suggest that face-to-face meetings and direct contact with other employees help
build trusting relationship and foster confidence in sharing knowledge (97-100). Allee
suggests that working together, in groups or teams, also helps build trust within the
organization (212).
British Petroleum uses two processes to help build trusting relationships between its
employees and develop the kind of knowledge sharing behavior it desires in its
employees (Currie 4). The first is the peer-assist process. "A business unit or team that
wants to leverage the knowledge of peer professionals within BP initiates the peer-assist
process" (Currie 4) in which professionals with similar experience or interests advise the
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team. Employees from different departments can be involved in a variety of teams,
which develops both learning and sharing skills. "The idea is that people are much more
willing to share with peers and less likely to be offended by criticisms from equals than
they would be if bosses were in the group" (Currie 5).
The second process implemented by British Petroleum, the after-action review, a concept
borrowed from the US Army, team members answer the following four questions:
1. What was supposed to happen?2. What actually happened?3.
Why are they different?4. What is the learning?
BP uses the after-action review for both relationship building and information about the
learning and knowledge sharing process (Currie 5).
Creating an environment in which employees trust each other enough to share their
knowledge is one aspect of the atmosphere needed in the knowledge management
process. Employees must also know that they can trust their managers. Managers must
believe in the knowledge management process and convey that belief and conviction to
their employees. Drucker writes that "the final requirement of effective leadership is
trust Trust is the conviction that the leader means what he says" (Drucker 122). "A
leader's actions and a leader's professed beliefs must be congruent, or at least compatible"
(Drucker 122).
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Thus, trust helps create an environment in which employees feel comfortable to share
what they know. Trust does not, however, provide the motivation for employees to share
what they know, to contribute to the knowledge pool, or to seek out others' valuable
information. Other techniques are employed to entice employees and get their
participation in the knowledge management process.
"Knowledge," write Davenport and Prusak, "being intimately bound up with people's
egos and occupations, does not emerge or flow easily. Employees must therefore be
motivated to create, share, and use knowledge" (158). Companies must seek long-term
motivations for its employees. If a company offers financial incentives that cannot be
sustained as incentive to employees, the basis for the participation will be the money and
the knowledge management process will fail. Davenport and Prusak note that the
"motivational aids cannot be trivial" (158). They give examples of project managers who
used incentives that ultimately failed. One manager offered frequent-flier mileage for
perusing or contributing to a discussion forum. The miles were suitable to get some
initial activity but did not sustain that activity on the forum. Another manager "offered
chocolate-covered ice cream bars -- admittedly a premium brand -- to any expert who
contributed a biography to the system" (Davenport and Prusak 158). This incentive
proved to be insufficient to work for very long.
Employees participate and contribute to the knowledge network to a greater degree when
rewards and/or recognition are used. "Successful knowledge sharing also requires being
linked to a company's reward system, such as Federal Express's pay-for-knowledge
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program" (Allee, "Twelve Principles" 72). Davenport and Prusak recommend that
companies tie knowledge sharing in with the evaluation and compensation structure
(158). Consulting companies Ernst & Young and McKinsey and Co. consider the
knowledge a consultant contributes to the company and that consultant's human networks
in the employee's evaluation.
High-visibility recognition is another way companies entice employees to share
knowledge. Companies can acknowledge their employees contributions in the way that
Buckman Laboratories did, with a conference at a resort. Or, the recognition can be in
the freedom to share knowledge outside of the company. Genentech allows its scientists
to publish their findings in journals immediately rather than waiting the traditional two
years. This allows the scientists to be recognized in their fields.
"This policy of openly sharing knowledge has yielded extraordinary
results. Genentech ranks fourth among research institutions in molecularbiology and genetics. The company also insists that researchers spend 25
to 35 percent of their time on their own projects. This does more than luretop minds, it also propels them to do great work. What really drives
highly-educated knowledge workers is pride in accomplishment" (Allee,Knowledge Evolution 214).
Incentives do not have to be monetary. A knowledge sharing culture is one in which
employees are actively encouraged, by example or company policy, to explore.
Minnesota Mining and Engineering (3M) allows their engineers to spend 15% of their
time of their own research (Allee, Knowledge Evolution 214).
Another way to motivate employees to be involved in the knowledge transfer process is
in marketing the knowledge sharing message to customers (Trussler 17). "This adds
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market pressure to use and contribute to the knowledge base and makes it obvious that
the management stands behind it" (Trussler 17). The APQC has discovered that "there is
no one right set of motivators to encourage people to share insights and build on the ideas
of others (Knowledge Sharing Culture 4). The incentives a company uses must match the
company's values and goals and fit with the culture the company has created.
The APQC concluded that the strongest motivators are:
Alignment with the current culture: By linking with a core company value,
matching the look and feel of other organizational processes, and building on the
value of collaboration, best-practice organizations make sharing knowledge anatural step.
A practical purpose to share: Organizations share knowledge to achieve abusiness goal or solve an important problem. Moreover, the value to the
individual who uses the knowledge is actively and directly reinforced. This isdone by rewarding people for contributing to the knowledge base or building
knowledge sharing into everyday work processes. (Knowledge Sharing Culture 4)
Throughout the literature reviewed for this research it is clear that while companies must
make changes and adaptations, there is a certain degree of flexibility allowed for in the
adjustments. In order for a knowledge management project to work, it must fit a
company's goals and objectives. "An information-based organization must therefore
structure itself around goals that clearly state expectations and objectives both for the
enterprise and for each specialist" (Drucker 331). Some self-examination is necessary in
order for companies to determine what knowledge management approach will best work
for them. Managers must be willing to relinquish some of the control found in the
traditional business model and facilitate knowledge sharing by creating an environment
of learning, exploration and sharing. Organization employees might view the changes as
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upheaval and balk at the thought of examining, evaluating and adapting. The traditional
corporate structure and environment must be up-dated to a knowledge-based structure
and environment so that companies may remain competitive and profitable. "There are
enormous opportunities, because change is opportunity" (Drucker 35).
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RESULTS AND CONCLUSIONS
"The 'question' of knowledge managementis posed in different ways. Some
management questions stem from traditional thinkingOther people view knowledge
Knowledge Evolution 9).
The techniques and strategies used to implement knowledge management into an
organization are as diverse as the number of definitions of knowledge management. The
approach used to gather, organize, share and utilize knowledge and information must suit
the organization's goals and objectives and fit the organization's established identity.
There is no one "right" way to implement knowledge management. This a part of the
challenge organizations face with knowledge management: how to incorporate
knowledge management in a way that is "right" for this particular organization. The
literature on implementing knowledge management indicates that certain factors such as
a "climate of trust and openness" (Allee, Knowledge Evolution 8), employee incentives,
and a "flat, networked organization" (Stewart 192) play an important role in the success
of knowledge management projects. How organizations choose to address these and
other factors, however, varies depending on the company and its knowledge management
goals.
This case study examines how three organizations utilizing knowledge management to
varying degrees create a knowledge sharing culture and facilitate the flow of information
within each company. The data collection method was interviews with knowledge
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workers at three corporations. Knowledge workers involved in knowledge management
projects in each company were asked a series of questions about their respective projects,
its conception and implementation, challenges encountered and strategies for overcoming
resistance to knowledge sharing. The interview questions used in this research are listed
at the end of the study.
The knowledge worker from Company A is the manager in the information center at a
newspaper in a southeastern city. The information center created and maintains an
intranet site designed primarily to support the newsroom staff. The site contains links to
government sites, statistical databases, lists of the center's information resources, the
paper's full-text archives and an 'experts database' listing the newspaper's employees and
topics in which they consider themselves to be knowledgeable.
Company B is a life sciences company, part of a large firm well-known for its knowledge
management activities. The knowledge worker from Company B maintains an intranet
site for a global group of 150-200 employees, primarily healthcare professionals. The
group creates and distributes tool containing scientific information used to influence
healthcare decisions and standards of care. The site provides employees with information
about the department, such as organizational charts, list of employees and the mission
statement. Also, included on the site is regulatory information vital to employees
working in the pharmaceutical industry, links to online resources to which the company
subscribes, information about the industry, and relevant news and links to important
internal sites.
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The knowledge worker from Company C, a global telecommunications company, is
referred to as a "knowledge strategist." The company employs several knowledge
management tools, including intranet sites and a web-based project space for group work
and teams which allows group members to access documents, participate in discussion
forums, email notification of changes to a project and includes a news channel so that
group members can post announcements.
All three companies use intranets as a primary knowledge management tool. Employees
at the companies rely heavily on email to communicate. The pervasiveness of technology
makes intranets a suitable option for knowledge sharing. Intranet sites provide access to
vital information that give a company a competitive advantage. Employees are
comfortable with the technology and already turn to the computer for communication.
This is beneficial as the challenge of overcoming employees' fear of technology is not an
issue. Employees have been acclimated to information technology. The challenge often
is convincing them to use the intranet site as participants and contributors. The
knowledge worker from Company B notes that instituting a culture change conducive to
knowledge sharing has been more challenging than setting up the intranet.
Management plays an important role in creating a knowledge culture. Particularly in
large organizations, a hierarchical corporate structure does not facilitate the flow of
information. "The flat, networked organization triumphs because the underlying
economics of communication and control have changed in favor of small, flexible
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organizations, not big ones" (Stewart 192). Technology makes communication faster and
easier. An appropriate corporate culture makes employees want to share knowledge and
utilize the company's intellectual assets. A fundamental issue, notes the knowledge
worker from the telecommunications company, is changing management. One of the foci
in this company is changing the way work is done, emphasizing a holistic approach in
which the company utilizes to the greatest extent all of its intellectual assets.
In the pharmaceutical industry, speed is of the essence. To enable employees to share
vital information quickly, the organization's corporate structure is decentralized - "each
group does what is useful," notes the knowledge worker. The corporate structure at the
newspaper has not been affected by knowledge management. The newspaper's staff is
significantly less than that of either of the two global companies also included in this case
study. Also, much of the newsroom staff's work is by nature individualistic and not
conducive to teams. Therefore, changing the traditional structure will not necessarily
benefit this organization. Other strategies are employed by the manager of the
information center to encourage employee participation in the knowledge management
project.
All three representatives agree that key to creating a culture of knowledge sharing is
having support from senior management. Company B enjoys very strong management
support from the very upper echelons to the head of the department in which she works.
Management must be committed to knowledge sharing in order for the groundwork to be
laid for employees to be convinced to participate. In the newsroom (Company A), new
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employees receive a memo from the department's head, asking them to contribute to the
'experts database.' Support from senior management is apparent in the funding that the
information center receives. In addition, the manager is very active on teams consisting
of employees from other departments, revealing an appreciation for the value of the
information center's resources. In both cases, however, senior management infrequently
utilize the knowledge management tools. It is noted that senior management often "talk
the talk, but don't walk the walk." There is verbal support for knowledge management,
but often members of upper-level management are not active in participating in
knowledge sharing. It is unclear whether they are getting information from other
personnel who are utilizing knowledge management tools or are simply continuing to
resort to traditional, inefficient ways to gather information. What is clear, however, is
that when senior management personnel participate in knowledge management projects,
other employees appear more likely to follow suit. Senior management in the marketing
department of Company B frequently publish work on the intranet. Using that as a
motivator, the knowledge worker is able to garner the participation of other employees.
Management level employees from Company C are involved in implementing knowledge
management into the organization. Not only do they develop and oversee knowledge
management projects but, in some cases, they are responsible for getting employees in
their departments to "buy in" to the practice.
Getting the employees involved with sharing knowledge and utilizing knowledge
resources is a major challenge. It often requires a change in the corporate culture. In
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traditional business environments employees tend to isolate themselves intellectually
from peers and to hoard information rather than disseminate it widely. In a knowledge
sharing environment, employees feel comfortable sharing information, recognize it as an
important part of their jobs. Fostering the knowledge sharing environment can be
difficult, depending on the type of culture the company has had. Organizations can
demonstrate commitment to developing a knowledge sharing culture by emphasizing to
employees the importance of education and learning. A common method used to
promote knowledge management tools while also stressing the importance of learning is
conducting training sessions. The newsroom staff is invited to "brown bag lunches" at
which new tools, databases or additions to the intranet are introduced and demonstrated.
This gives the information center manager the opportunity to show how the intranet can
benefit the staff.
At Company C, one-on-one meetings are held with key management personnel to secure
their participation. It is then incumbent on those management personnel to promote
knowledge management projects and get their employees on board.
Training sessions are also held at Company B, however, the scientists are often too busy
to participate. For the knowledge worker from this company, it is easier to speak
personally with employees to get their involvement. Stopping employees in the hallway,
mentioning the intranet in conversation and at every opportunity in meetings allows the
knowledge worker to convince employees by directly addressing their concerns and
needs. Because trust is a vital component to the knowledge sharing culture, personal
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interaction helps add a human aspect into the knowledge management concept. As the
representatives from Company B and Company C note, knowledge management is not
just about technology but also includes human resources, work processes and
communication. Face-to-face conversations can pinpoint an employees' concerns and
hesitations and enable a knowledge worker to emphasize knowledge management as the
employee's tool as opposed to a new fad in which the boss in interested. The knowledge
worker from Company C believes "knowledge management is about people and process
first." The knowledge management tool must address the needs of the employees.
Not one of the companies interviewed use financial incentives to reward employees for
contributing to the knowledge base. The knowledge worker from Company B does
encourage employees to publish findings on the intranet and recognizes the contributions
of those employees who do participate. Getting employees involved in creating and
publishing content on the intranet site makes them feel as if they own it, notes the
knowledge worker. There is a sense of pride when an employee sees something s/he has
written on the intranet. Stewart recognizes that, in the Information Age, organizations
rely much more on their employees' knowledge. In order to get employee participation
and contributions, organizations must "create a sense of cross ownership between the
employee and company" (101).
Knowledge management is an organic process, continually changing as the needs of the
company and its employees change. The traditional corporate environment, with its
hierarchical structure and emphasis on individualism and stability, will not support
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knowledge management. Knowledge management processes evolve as knowledge is
shared and information flows throughout the company. Changes in the economy, such as
the globalization of the marketplace and the emphasis on knowledge and information,
make it necessary for organizations to focus on what they know rather than what they
own (Davenport and Prusak xiii). In order to remain competitive, companies must
require their employees to focus more on the "global" perspective, rather than on the
individual, as had been the corporate custom. This cultural shift takes place over time, as
both management and employees learn how to utilize an organization's intellectual assets
to strengthen its position in the market. When incorporating knowledge management into
an organization, there are many issues that must be addressed. The corporate culture is
but one facet. It is, however, a vital component. Without an environment that supports
the flow of information, organizations run the risk of under-utilizing their most valuable
resource, the knowledge within the company.
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APPENDIX
Interview Questions
The following questions were included in the interview:
1. What is your position/title in the company?
2. What types of knowledge management projects are employed in yourdepartment/company?
3. How long have these practices been in effect?
4. Did the decision to implement knowledge management practices come from
senior management or was it a product of a departmental decision?
5. What was/is your involvement in process of incorporating knowledgemanagement into the workplace?
6. What is the desired goal in utilizing knowledge management?
7. What processes were involved in designing and implementing knowledge
management practices?
8. Who was involved in the planning and developing of the program (employees atthe managerial level or employees from a range of employment levels)?
9. What challenges have been encountered in the process of implementing
knowledge management?
10. What has been employee reaction? What is the level of participation?
11. What alterations were made in order to accommodate knowledge management?
12. What steps were taken to get employees to participate and contribute to theknowledge management process?
13. Are incentives (rewards, recognition, money) part of the strategy to get employee
participation?
14. What aspects of the day-to-day operations are affected (positively or negatively)by implementing knowledge management?
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15. What changes, if any, have been made to the corporate policy, managerial
techniques, corporate environment in order to accommodate knowledgemanagement?
16. Has the use of knowledge management practices had the desired affect?
17. Are you satisfied with the way your department/company currently utilizes
intellectual assets?
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